True or False? Reference: From Practice exam 1. See Page 68 (of Jones Macro Econ Crisis Ed). ~Note that you might want to be prepared to show Increasing/Decreasing/Constant returns to scale via the TWO DIFFERENT ways noted on page 68. False. There are two ways to solve this. 1. Given a CobbDouglas Production Function, which takes the form where ) Apply this rule to the problem above, with =(1/3) & =(1/2), +<1 decreasing returns to scale. 2. Alternatively (and, gradewise, additionally), know the following definition of Constant Returns to Scale “With a Constant Returns to Scale production function That is; Applying this rule to this problem,

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